§ 53-181. Statements and
information to be furnished to borrowers; power of attorney or confession of
judgment prohibited.

(a)
Contents of Statement Furnished to Borrower. - At the time a loan is made, the
licensee shall deliver to the borrower, or if there be two or more borrowers,
to one of them a copy of the loan contract, or a written statement, showing in
clear and distinct terms:

(1)
The name and address of the licensee and one of the primary obligors on the
loan;

(2)
The date of the loan contract;

(3)
Schedule of installments or descriptions thereof;

(4)
The cash advance;

(5)
The face amount of the note evidencing the loan;

(6)
The amount collected or paid for insurance, if any;

(7)
The amount collected or paid for filing or other fees allowed by this Article;

(8)
The collateral or security for the loan;

(9)
If the loan refinances a previous loan, the following relating to the
refinanced loan: (i) the principal balance due; (ii) interest charged that is
included in the new loan; and (iii) rebates on any credit insurance, listed
separately.

(10)
In addition to any disclosures otherwise provided by law, a licensee soliciting
loans using a facsimile or negotiable check shall provide the disclosures
required by G.S. 75-20(a).

(b)
Schedule of Charges, etc., to Be Made Available; Copy Filed with Commissioner. -
Each licensee doing business in North Carolina shall make readily available to
the borrower at each place of business such full and accurate schedule of
charges and insurance premiums, including refunds and rebates, on all classes
of loans currently being made by such licensee, as the Commissioner shall
prescribe, and a copy thereof shall be filed in the office of the Commissioner
of Banks.

(c)
Power of Attorney or Confession of Judgment Prohibited. - No licensee shall
take any confession of judgment or permit any borrower to execute a power of
attorney in favor of any licensee or in favor of any third person to confess
judgment or to appear for the borrower in any judicial proceeding and any such
confession of judgment or power of attorney to confess judgment shall be
absolutely void. (1955,
c. 1279; 1961, c. 1053, s. 1; 1989, c. 17, s. 9; 2001-519, s. 6.)